Kirby McInerney LLP Investigates Potential Class Action Claims against Mortgage Servicing Firm Cenlar FSB in Connection with Force-Placed Insurance Kickbacks

Business Wire

Regulators found that Assurant Specialty Property, which was Cenlar’s force-placed insurance carrier, gave improper compensation to loan servicers such as Cenlar

NEW YORK--(BUSINESS WIRE)-- Kirby McInerney LLP, a class action litigation firm is investigating potential class action claims against Cenlar FSB, a leading mortgage servicer, in connection with a suspected scheme to overcharge homeowners for force-placed insurance.

Mortgages require borrowers to maintain insurance to protect the lender’s interests in the secured property. If the borrower’s insurance lapses, the mortgage servicer is entitled to purchase its own insurance – called force-placed insurance – and bill the borrower for reimbursement.

Kirby McInerney is investigating Cenlar’s suspected receipt of secret rebates or kickbacks from its force-placed insurance carrier, Assurant Specialty Property, while improperly billing borrowers based on the full price of the insurance. In March 2013, the New York State Department of Financial Services found that Assurant had a practice of giving mortgage servicers improper compensation disguised as “commissions,” reimbursements for “qualified expenses,” and reinsurance fees.

Assurant Specialty Property is a subsidiary of Assurant Inc., a public company with $30 billion in assets (NYSE: AIZ).

Cenlar frequently does business under the name of Central Loan Administration & Reporting.

If you are homeowner or mortgage loan borrower who has been charged for force-placed insurance by Cenlar or any other loan servicer, or if you wish to discuss these matters or have any questions concerning this announcement or your rights, you may contact Kirby McInerney partner Mark A. Strauss by email at [email protected], or by telephone at (212) 371-6600 or toll free at (888) 529-4787. There is no cost or obligation to you.

About Kirby McInerney LLP

Kirby McInerney LLP is a New York-based law firm representing plaintiffs in securities, whistleblower, antitrust, and consumer litigation. The firm is committed to the aggressive pursuit of justice and to championing the rights of clients through class action lawsuits, arbitrations, and individual lawsuits. The firm has been profiled by Law360.com as one of the “Most Feared Plaintiffs’ Firms,” and named to The National Law Journal’s Plaintiffs’ Hot List. To learn more about Kirby McInerney LLP, please go to our website, http://www.kmllp.com/index.asp.

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